- Ambiguity of Term (misunderstanding)
- B & S contract for delivery of cotton on the “Peerless.” B means the one sailing in May; S, the one in July. Neither knows or has reason to know there are 2 ships named Peerless. There is no contract!
- If B knows or has reason to know there are 2 ships named Peerless, then there would be a contract on the seller’s terms. The innocent party’s meaning will govern.